Credit card debt is considered to be the most complex type of debt as it is hard to handle the bills. You should always be vigilant about how many credit cards you have and the companies with whom you have the credit cards. You need to always check your credit reports and be sure about where you are using the credit cards and with whom you are sharing your personal information. Otherwise, you will end up incurring huge debts as a result of scams and then you will be required to do credit card consolidation in order to pay those off.
Different types of credit card debt scams
If you end up losing your credit cards, or giving out information to a wrong person it can result in credit card debt which you won’t even be aware of. So, you need to be aware of where you are using the credit card before letting the stores swiping the cards.
Other than this, it is also important for you to use the credit cards and make on-time payments on those. In addition, you will also have to check your credit reports from time to time. This can help you to keep a watch on the debts that are listed on your credit reports, so, you will never miss out on any of the listings even if these are wrong. While checking your credit reports, if ever you are able to find out that there are any such listings or debts that you are not aware of, you should immediately send a debt verification letter to the creditor and check the details with the credit bureaus. Then, you should talk to the company reporting the debt and get the things solved.
Other than this, if you ever lose your credit cards, you should immediately file complaint with the police and the credit bureaus. Then, you will have to talk to the creditors and either put a freeze on the account and close down the account. This can help you to limit the damage that such scams are going to do to your credit.
Then, you may also fall prey to the debt collection scams. Sometimes, it is true that your credit card debt when unpaid can go to collections. The creditors sells off or charges off the debt to a collection agency. But, there are junk debt buyers too who scam people for money. So, you need to be aware of these scammers. If you ever get calls from any such company, if you are getting harassed over the phone by an unknown and unnamed company with no contact number, what you will be required to is send a debt validation letter to the supposed collection agency.
In most of the cases, these people are going to ring you and threaten you with dire consequences if you do not immediately fund money to them or give them your personal information. But, you should never give into such scams and avoid giving out your information or money. As a consumer you have the right to get the debt validated. According to the FDCPA, if you send debt validating letter to the collection agency within 30 days of the first debt collection attempt, the collection agency is not supposed to contact you anymore regarding the debt without validating the debt. So, whenever, you will get such a call or letter and so on, you should remember to send a debt validation letter through certified mail requesting a return receipt before making any other move.